Tribal New Source Review Implementation Manual

1 Environmental Protection Agency Tribal New Source Review Implementation Manual May 2012 Tribal New Source Review Implementation Manual - May 2012 [This page intentionally left blank.] Tribal New Source Review Implementation Manual May 2012 iii CONTENTS TABLES .. vi LIST OF ACRONYMS .. vii PURPOSE OF DOCUMENT ..1 I. GENERAL AIR HISTORY AND BACKGROUND .. 2 A. CLEAN AIR ACT (CAA OR THE ACT) ..2 B. EPA S 1984 INDIAN POLICY ..3 C. GENERAL PRINCIPLES OF STATE, Tribal AND FEDERAL AUTHORITY TO IMPLEMENT THE CAA IN INDIAN COUNTRY ..3 D. Tribal AUTHORITY E. TREATMENT IN THE SAME MANNER AS A STATE (TAS) ..6 II. Tribal NEW Source Review .. 10 A. WHAT IS THE NEW Source Review PROGRAM? ..10 B. WHAT IS THE Tribal NSR RULE? ..11 C. GENERAL BACKGROUND ON THE Tribal NSR RULE ..11 D. IMPORTANCE AND THE PURPOSE OF THE Tribal NSR Rule ..12 E. THE POLLUTANTS AND SOURCES REGULATED UNDER Tribal NSR RULE.

2 12 F. PERMIT FEES UNDER THE Tribal NSR RULE ..13 III. Implementation OF A Tribal NSR PROGRAM .. 14 A. ROLES AND RESPONSIBILITIES IN THE Tribal NSR Program ..14 B. DECISION MATRIX ..14 C. Tribal NSR DECISION MATRIX - ASSESSMENT ..14 D. Tribal NSR DECISION MATRIX DETERMINING PRIORITIES ..15 IV. EPA Implementation WITH Tribal PARTICIPATION (APPROACH #1).. 18 A. BENEFITS TO PARTICIPATING IN EPA IMPLEMENTED PROGRAM ..18 B. CHALLENGES TO PARTICIPATE IN EPA IMPLEMENTED PROGRAM ..18 V. DELEGATION (APPROACH #2) .. 19 A. DELEGATION ..19 B. REQUIREMENTS OF DELEGATION ARE SIMILAR TO THAT OF TAS ..19 C. BENEFITS OF DELEGATION ..19 D. CHALLENGES TO DELEGATION ..19 E. DELEGABLE ELEMENTS OF Tribal NSR ..20 F. SUGGESTED STRATEGY AND RESOURCES FOR DEVELOPING CAPACITY TO REQUEST DELEGATION ..20 G. GENERAL PROCESS FOR DELEGATION ..20 Tribal New Source Review Implementation Manual May 2012 iv H. Implementation OF DELEGATION AGREEMENT.

3 21 I. ROLES AND RESPONSIBILITIES ..22 VI. Tribal Implementation PLAN (APPROACH #3) .. 23 A. WHAT IS A TIP?..23 B. PURPOSE OF A TIP ..23 C. HOW IS THE Tribal NSR RULE RELATED TO TIPS? ..23 D. BENEFITS OF THE TIP APPROACH ..23 E. CHALLENGES OF THE TIP APPROACH ..24 F. WHAT IS REQUIRED IN DEVELOPING A TIP? ..24 G. GENERAL PLANNING FOR A TIP APPLICATION ..28 H. STEPS IN APPLYING FOR A TIP ..28 I. CONCURRENT APPLICATIONS OF A TIP AND TAS ..28 J. REGULATIONS ..29 K. ENFORCEMENT PROGRAM ..29 L. SEVERABLE ELEMENTS OF A TIP ..29 M. MODEL CODES AND RULES ..31 VII. PERMITTING AND PERMITS .. 32 A. PERMITS ..32 B. NEW Source Review PERMITS ..33 C. THE TYPES OF NSR PERMITTING PROGRAMS ..33 D. THE NSR PERMITTING PROCESS ..34 VIII. PREVENTION OF SIGNIFICANT DETERIORATION (PSD) PROGRAM REQUIREMENTS38 A. APPLICABILITY: NEW AND MODIFIED MAJOR STATIONARY SOURCES ..38 B. THE PERMIT APPLICATION: PSD PROGRAM REQUIREMENTS.

4 41 C. BEST AVAILABLE CONTROL TECHNOLOGY (BACT) ..41 D. AIR QUALITY IMPACT ANALYSIS (AQIA)..42 E. ADDITIONAL IMPACT ANALYSIS ..42 F. PUBLIC INVOLVEMENT ..42 G. PSD PERMIT APPEALS ..42 H. DELEGATION OF AUTHORITY ..43 I. KEY POINTS TO REMEMBER: PSD ..43 J. MAJOR NEW Source Review IN NONATTAINMENT AREAS (NA) ..43 K. APPLICABILITY FOR MODIFIED SOURCES ..44 L. NONATTAINMENT NSR PERMITTING IX. Tribal MINOR NSR PROGRAM .. 47 Tribal New Source Review Implementation Manual May 2012 v A. APPLICABILITY OF THE Tribal MINOR NSR PROGRAM ..47 B. APPLICABILITY FOR NEW MINOR SOURCES POTENTIAL TO EMIT (PTE) ..47 C. APPLICABILITY FOR MODIFICATIONS - ALLOWABLE-TO-ALLOWABLE TEST ..48 D. THE PERMITTING PROCESS: TYPES OF PERMIT APPLICATIONS UNDER THE Tribal MINOR NSR RULE ..49 E. PERMIT ISSUANCE PROCESS ..51 F. KEY POINTS TO REMEMBER: MINOR NSR ..54 G. BENEFITS OF THE Tribal NSR RULES FOR TRIBES ..54 X. ENFORCEMENT AND COMPLIANCE.

5 55 A. COMPLIANCE ASSISTANCE ..55 B. COMPLIANCE MONITORING ..55 C. EPA-AUTHORIZATION OF Tribal INSPECTORS TO CONDUCT COMPLIANCE MONITORING UNDER FEDERAL AUTHORITY ..56 D. ENFORCEMENT ..56 XI. RECORDKEEPING .. 58 A. GENERAL RECORDS MANAGEMENT ..58 B. RULE REQUIREMENTS FOR RECORDKEEPING ..58 XII. FUNDING OPTIONS AND RESOURCES AVAILABLE TO TRIBES .. 59 A. DIRECT Implementation Tribal COOPERATIVE AGREEMENTS (DITCAS) ..59 B. CAA 103 PROJECTS: ASSESSING ..60 C. CAA 105 PROGRAMS: MANAGING AIR QUALITY ..61 D. GENERAL ASSISTANCE PROGRAM (GAP) CAPACITY BUILDING ..63 E. THE TRIBE AIR GRANTS FRAMEWORK MENU OF OPTIONS ..64 F. RESOURCES FOR AIR QUALITY FUNDING ..65 XIII. EDUCATION, TRAINING, AND RESOURCES .. 67 A. TRAININGS ..67 B. NSR PRESENTATIONS ..67 C. FACT SHEETS ..67 D. EXAMPLE MATERIALS ..67 XIV. CONTACT INFORMATION .. 68 A. CONTACTS ..68 B. AVAILABLE TOOLS ..69 XV. ATTACHMENTS .. 70 Tribal New Source Review Implementation Manual May 2012 vi TABLES Table 1.

6 Permit Application and Issuance Timeline .. 37 Table 2. Major Source Thresholds for Attainment Areas .. 39 Table 3. Major Source Thresholds for Nonattainment Areas .. 43 Table 4. Minor Tribal NSR Rule 49 Table 5. Funding Authorities .. 66 Tribal New Source Review Implementation Manual May 2012 vii LIST OF ACRONYMS AIAQTP American Indian Air Quality Training Program AIEO American Indian Environmental Office APTI Air Pollution Training Institute AQAD Air Quality Assessment Division AQIA Air Quality Impact Analysis AQPD Air Quality Policy Division AQRV Air Quality Related Value BACT Best Available Control Technology BTU British Thermal Unit C6H6 Benzene CAA Clean Air Act Cd Cadmium CEMS Continuing Emissions Monitoring System CFR Code of Federal Regulations CH4 Methane CO Carbon Monoxide CO2 Carbon Dioxide CPMS Continuous Parameter Monitoring Systems DITCA Direct Implementation Tribal Cooperative Agreement EPA United States Environmental Protection Agency EAB Environmental Appeals Board FARR Federal Air Rule for Reservations FIP Federal Implementation Plan FR Federal Register GAP General Assistance Program GHG

7 Greenhouse Gas GP General Permit H2S Hydrogen Sulfide H2SO4 Sulfuric Acid Mist HAP Hazardous Air Pollutant HEID Health & Environmental Impacts Division HFC Hydro fluorocarbon Hg Mercury ITEP Institute for Tribal Environmental Professionals LAER Lowest Achievable Emission Rate MACT Maximum Achievable Control Technology MOU Memorandum of Understanding N2O Nitrous Oxide NACAA National Association of Clean Air Agencies NAAQS National Ambient Air Quality Standards NAU Northern Arizona University NEI National Emission Inventory NESHAP National Emission Standard for Hazardous Air Pollutants NO2 Nitrogen Dioxide Tribal New Source Review Implementation Manual May 2012 viii NOx Oxides of Nitrogen NA NSR Nonattainment New Source Review NSR New Source Review NSPS New Source Performance Standard NTAA National Tribal Air Association NTEC National Tribal Environmental Council O3 Ozone OAQPS Office of Air Quality Planning and Standards OAR Office of Air and Radiation OECA Office of Enforcement and Compliance Assurance OID Outreach and Information Division OMB Office of Management and Budget Pb Lead PEMS Predictive Emission Monitoring System PFC Per fluorocarbon PM Particulate Matter ppm Parts Per Million PSD Prevention of Significant Deterioration PTE Potential to Emit QEPS Quantifiable, Enforceable.

8 Permanent and Surplus RACM Reasonably Available Control Measures RACT Reasonably Available Control Technology SER Significant Emission Rate SF6 Sulfur Hexafluoride SIP State Implementation Plan SO2 Sulfur Dioxide SPPD Sector Policies and Programs Division TAC Tribal Air Coordinator TAMS Tribal Air Monitoring Support Center TAR Tribal Authority Rule TAS Treatment in the Same Manner as a State TEISS Tribal Emission Inventory Software Solution TIP Tribal Implementation Plan tpy Tons Per Year TSD Technical Support Document VOC Volatile Organic Compound Tribal New Source Review Implementation Manual May 2012 1 PURPOSE OF DOCUMENT This training Manual is to serve as a resource tool to support understanding and Implementation of the federal Tribal Minor New Source Review (NSR) rule. This is a comprehensive, informational and instructional document developed to guide you and the EPA regions in working collaboratively and facilitating a transparent process.

9 In an attempt to promote a common understanding of the NSR process, we have included some general information on air quality, explanations of specific rules, process materials and template materials. These materials are intended to assist you and the EPA regions in implementing the Tribal NSR rule. In addition to information specific to the Tribal NSR rule, this training Manual provides basic information on air quality issues. It also provides information concerning Tribal air quality authority under federal law. This information is intended to ensure we all have a common understanding of key information as we discuss the specifics of the Tribal NSR rule, its applications, and Implementation options and tools. The tabs that follow will correlate with the Roman numeral sections and provide more in-depth information and/or sample products that can be used as guides for Implementation of your program.

10 There are many differing levels of capacity in Indian country and we are striving to leverage resources and information to assist in the development and Implementation of the Tribal NSR rule specifically, and NSR programs generally, to accommodate the differences. Throughout this document You means a federally-recognized Indian tribe; We means the United States Environmental Protection Agency (EPA). The discussion in this document is intended solely as an information Source . The statutory provisions and EPA regulations described in this document contain legally binding requirements. This document is not a regulation itself, nor does it change or substitute for those provisions and regulations. Thus, it does not impose legally binding requirements on the EPA, tribes, or the regulated community. This document does not confer legal rights or impose legal obligations upon any member of the public.